This week, we are excited to highlight our invaluable relationship with Claratus Commercial Finance in this case study. The FCA regulated business finance firm is based in London and provides clear, fair and effective finance to a wide range of UK SMEs, including professional service firms and the Gaming & Leisure sector.
Spotcap has provided business loans to several of Claratus’ clients in the past. For example, we recently supplied a £350k fully unsecured loan to a family-owned, fast-growing online retailer that was looking for assistance in purchasing additional stock.
Due to our simple and straight-forward application process and proactive client services, we were able to provide a loan to the retailer in no time. And by doing so, Claratus was able to consolidate the strong relationship with their client even further.
The UK financing landscape is complex and commercial finance brokers are an important piece of the puzzle. This case study with Claratus highlights why. We truly value our relationships with them and are happy to go the extra mile to secure financing for their clients.
Unsecured loans are an important part of the financing mix and can help UK business succeed. When looking for short-term funding, businesses are increasingly keen to use an unsecured loan. This means that they don’t need to provide any security, but the lender will often ask for a personal guarantee. The guarantee will be provided by the business owner who will be held responsible if the business is unable to keep up with the loan repayments. In most cases, lenders will want the guarantor to have good personal net worth and be a UK homeowner.
There are some lenders which offer fully unsecured short-term loans to established and profitable businesses, without the need for a personal guarantee. Given that the lender takes on a considerably higher risk, interest rates could be higher. That said, many businesses are glad to receive a short-term loan without having to provide any collateral.
Originally published September 12 2017 , updated March 4 2020